Michael Ellis: My right hon. Friend is certainly right that it creates an immediate economic shock. That is why the effect on the interest rates and on the rouble is as we have already seen: within hours, the shock to the economic system is significant.
Russian businesses listed in London have a combined market capitalisation of more than £450 billion, or nearly half a trillion pounds. That is the money we are talking about. It includes some of Russia’s largest state-owned enterprises, and the Kremlin is hugely reliant on those tax revenues. Banning them from raising debt in London will further increase—massively so, I submit—the burden on the Russian state. Global giants such as Gazprom will no longer be able to issue debt or equity in London. In the past seven years, Russian companies have raised £8 billion on UK markets. That ends today.
The second piece of legislation will ban exports to Russia across a range of items, including those on the dual-use list and other goods and technology critical to Russia’s military-industrial complex, including its maritime and aviation sectors. It will also ban a range of technical and financial services related to such items. By enacting this measure in alignment with the United States, the European Union and other partners, we will collectively cut off much of Russia’s high-tech imports. Those include critical high-end technological equipment such as microelectronics, telecommunications, sensors and marine and navigation equipment. It will blunt Russia’s military-industrial and technological capabilities, it will gradually degrade Russia’s commercial air fleet, and it will act as a drag on Russia’s economy for years to come.
The Department for International Trade and Her Majesty’s Treasury will offer advice and guidance to UK businesses affected. Consular staff will continue to support British nationals in Russia as well as those in Ukraine, and I take this opportunity to commend our consular staff in those places.